2021

NAMES: REG:

BRADLEY OBIERO 19/05806

Instructors name: Mr. David Akoo

Course number: BAM 2207
[International Business
Law]
Date:12/11/21 [ASS 4]
INTERNATIONAL BUSINESS LAW

1) In relation to the creation and operation of law explain the role of the
following institutions.
a) The legislature 2marks
Soln
The legislature means the power legislate or make laws. It is the body or organ of
government that has been given the responsibility of making laws in a nation. The
legislative power of the government in Kenya is vested in the National Assembly
and the Senate.

b) The executive 2marks

Soln
The executive means the power to execute or carry out laws. It is the branch of
government which executes or carries out laws of the government at every level.
Powers of the executive are vested in the hands of the president and governors of
state. The president/governor has other people who work with him in discharging
his executive duties.

c) The judiciary 2 marks

Soln
Judicial Powers means the power to interpret laws and pass judgement according
to the law. The judicial powers of the Government is vested in the courts. This
arm of government is given the responsibility of interpreting the Constitution, and
laws made by the legislative arm of government.
2) In relation to the formation of a contract in the context of the UN
convention for the international sale of goods explain:
a) The meaning of an offer 2marks
Soln
This is an “expression of the willingness to contract” on definite terms once such
terms are accepted. It is made by the offeror to the offeree and may either be
express or implied. It must be made with the intention that it will become binding
upon acceptance. A person who makes the offer is known as the offeror and the
offer is addressed to the offeree.
b) The circumstances under which an offer may be terminated 5marks
Soln
A contractual offer may come to an end or terminated in any of the following
ways:
1) Revocation:

This is the withdrawal of the offer by the offeror. At common law, an offer is
revocable at any time before acceptance.

2) Rejection:

An offer terminates if the offeree refuses to accept the same, the refusal may be
express or implied from the conduct of the offeree e.g. silence by the offeree
amounts to a rejection.

3) Counter offer:

This is a change or variation of the terms of the offer by the offeree. It is a form of
rejection. The legal effect of a counter offer is to terminate the original offer as
was the case (Hyde vs. Wrench)

4) Lapse of time:

If an offer is not accepted within the stipulated time and not revoked earlier, it
lapses on expiration of such duration. Where no duration is specified, the offer
lapses on expiration of reasonable time.

5) Acceptance:

The acceptance of an offer terminates an offer by creating a contract. You cannot

revoke an offer which has been accepted.

6) Failure of a condition:

If a condition or state of affairs upon which an offer is made fails, the offer lapses.
Failure of a condition in a conditional offer terminates the offer and there cannot
be a contract even if there is a purported acceptance.

7) Supervening incapacity:

Incapacity to the offeror or to the offeree terminates the offer. The incapacity may
include: Insanity, Bankruptcy, Professional disqualification

8) Death:

Whether an offer terminates upon death depends on whose death i.e. the offeror
or the offeree.
 c) A counter-offer 2marks
Soln
Counter offer
This is a change, variation or modification of the terms of the offer by the offeree.
It is a conditional acceptance. A counter offer is an offer in its own right and if
accepted an agreement arises between the parties. Its legal effect is to terminate
the original offer
3) Within the context of the UN Convention on contracts for the international
sale of Goods, explain the obligations imposed on the buyer of goods. 5marks
Soln
Under Article 53 The buyer must pay the price for the goods and take delivery of them as
required by the contract and this Convention.
Article 54 discusses about the buyer's obligation to pay the price includes taking such
steps and complying with such formalities as may be required under the contract or any
laws and regulations to enable payment to be made.
Article 55 Where a contract has been validly concluded but does not expressly or
implicitly fix or make provision for determining the price, the parties are considered, in
the absence of any indication to the contrary, to have impliedly made reference to the
price generally charged at the time of the conclusion of the contract for such goods sold
under comparable circumstances in the trade concerned.

Under Article 57

(1) If the buyer is not bound to pay the price at any other particular place, he must pay it
to the seller:

(a) at the seller's place of business; or

(b) if the payment is to be made against the handing over of the goods or of documents,
at the place where the handing over takes place.

Under Article 58

(1) If the buyer is not bound to pay the price at any other specific time, he must pay it
when the seller places either the goods or documents controlling their disposition at the
buyer's disposal in accordance with the contract and this Convention.

(3) The buyer is not bound to pay the price until he has had an opportunity to examine
the goods, unless the procedures for delivery or payment agreed upon by the parties are
inconsistent with his having such an opportunity.
 Article 59 The buyer must pay the price on the date fixed by or determinable from the
contract and this Convention without the need for any request or compliance with any
formality on the part of the seller

Article 60 The buyer's obligation to take delivery consists:

(a) in doing all the acts which could reasonably be expected of him in order to enable
the seller to make delivery;

(b) in taking over the goods.

(TOTAL MARKS 20)